It has been another busy week for Australia's top brokers. This has led to the release of a large number of broker notes.
Three broker buy ratings that have caught my eye are summarised below. Here's why brokers think these ASX shares are in the buy zone:
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Afterpay Ltd (ASX: APT)
According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $145.00 price target on this payments company's shares. This follows news that the company will allow US consumers to shop at retail giants such as Amazon and Nike with a pay anywhere offering. The broker notes that combined, the 12 retailers account for almost half of all U.S. ecommerce volume. Morgan Stanley sees this as a big positive and suspects that it could lead to fully integrated BNPL services at some of these merchants in the future. The Afterpay share price is fetching $129.95 today.
Catapult Group International Ltd (ASX: CAT)
A note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this sports analytics and wearables company's shares slightly to $2.45. According to the note, the broker believes that Catapult's acquisition of UK-based SBG Sports Software will support its sales growth and strengthen its competitive position and customer value proposition. However, it does expect this deal to push back its cashflow breakeven point into FY 2025. The Catapult share price is trading at $2.01 today.
Metcash Limited (ASX: MTS)
Analysts at Citi have retained their buy rating and $4.10 price target on this wholesale distributor's shares. According to the note, the broker is expecting a strong full year result from Metcash next week. Citi has pencilled in a 23% increase in full year earnings to $399 million. This is thanks partly to Food earnings and the Total Tools acquisition, which are expected to offset a couple of major contract losses. The Metcash share price is trading at $3.67 this afternoon.
